USD

The USD has remained supported on expectations of a considerably-less dovish Fed. But with 'Fed day' generally being bearish for the dollar alongside its tendency to selloff into the year end, I have an inkling we're heading towards a "buy the rumour, sell the fact" for the USD.

Sr. Technical Strategist Michael Boutros highlights the levels that matter on the USD Majors, commodities & stocks into the weekly open / close of the year.

US Dollar rebounded off trend support early in the month with the bulls in a holding pattern ahead of the Fed. Battle lines drawn on the DXY weekly technical chart.

U.S. stocks are heading to a higher open. US inflation data brought no surprises and bolstered expectations that the Fed would cut rates again next week. CPI rose 2.7% YoY, up from 2.6% in October, and core CPI rose 3.3%. The data cemented expectations that the Fed would cut rates in December, boosting stocks while the USD was unchanged.

The US Dollar showed a strong support bounce since last Friday’s NFP report, setting the stage for resistance tests into tomorrow’s CPI and next week’s FOMC.

Sr. Technical Strategist Michael Boutros highlights the levels that matter on the USD Majors, commodities & stocks into the weekly open.

U.S. stocks are all set for a muted open after reaching record highs last week and as investors look ahead to inflation data later in the week. Stocks in the US have rallied across the past three weeks as the Trump trade continued to play out. US CPI is due on Wednesday and is expected to rise 2.7% YoY in November.

U.S. stocks are set for a stronger open after the US non-farm payroll report supported the case for a December rate cut while showing that the labour market remains resilient. 227K jobs were added, up from 36k last month. Meanwhile, unemployment rose to 4.2% from 4.1% and average wage growth was 0.4% stronger than the 0.3% forecast. The market still sees the Fed cutting rates in December by 25 bps.

A classic bearish reversal pattern has emerged on USD/CHF, during a month usually associated with USD losses. But that doesn’t mean this reversal is a slam dunk for bears.

The Fed is likely, but not certain, to cut interest rates by 25bps later this month, and a strong NFP report could reopen the door for close decision.

U.S. stocks are set for a muted opening as investors digest the latest jobs data and prepare for tomorrow's nonfarm payroll report. Yesterday, the S&P 500, the NASDAQ 100, and the Dow Jones booked record closing highs thanks to a surging technology sector and after Federal Reserve chair Jerome Powell highlighted the strength of the US economy.